Match Group, Inc. (MTCH) stock analysis

P/E below its 5-year median

Match's P/E of 14.2 is below its own 5-year median of 16.7.

P/E below the industry

Match's P/E of 14.2 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.

EV/EBITDA below its 5-year median

Match's EV/EBITDA of 8.5 is below its 5-year median of 13.2.

P/S below the industry

Match's price-to-sales of 2.74 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 2.77 (book value is negative, so we use sales).

Trading below fair value

The share price of $41.63 is below our fair value estimate of $64.13.

Margin of safety over 20%

The price is 35.1% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 3.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 24.3% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 0.5% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

Guidance issued

The latest outlook (Q3 2026 Total Revenue, Aug 4, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 75.8% over the last twelve months, against 72.3% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 88.0%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

No debt

Match has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

Operating income covers interest expense 6.1 times.

Short-term assets cover short-term debts

Current assets are 1.79 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.29; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Match paid dividends worth 1.9% of the share price over the last twelve months.

Yield below Treasuries

The 1.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Match yields 1.9%.

Dividend stability

Fewer than five years of dividend history.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 16.0% of free cash flow.